After falling to lows of $2,100 on the back of speculations that U.S. President Joe Biden’s administration would increase capital gains, Ethereum (ETH) has regained momentum and surged past the psychological price of $2,500.
Market analyst Lark Davis has acknowledged that ETH has attained the highest daily close ever, a bullish sign for Ethereum.
ETH is up by 22.5% in the last 24 hours to trade at $2,550 at the time of writing, according to CoinMarketCap.
The second-largest cryptocurrency based on market capitalization has been eyeing new all-time highs (ATHs) and surging upwards since it broke its previous record of $1,400 set in 2018. It has yet to retest its all-time high of approximately $2640, however.
Market trader Michael van de Poppe recently disclosed that Ethereum may be eyeing the $5,000 price level. His sentiments are echoed by on-chain metrics provider Santiment who revealed that an uptrend to $3K and beyond looked promising for Ethereum, thanks to booming non-fungible token (NFT) and decentralized finance (DeFi) sectors that rely on Ethereum blockchain to operate.
Ethereum is trading above stable support
The current Ethereum price topping $2,500 is trading above its stable support, said Ali Martinez. The on-chain analyst explained:
“Intotheblock’s IOMAP shows that ETH is currently trading above stable support. Over 200K addresses bought 10 million Ethereum at $2,270. This demand barrier may absorb any downward pressure, as holders within it might do anything to avoid having their investments go Out of the Money.”
More participants are also jumping on the Ethereum bandwagon. Crypto data provider Glassnode has revealed that the number of non-zero ETH addresses reached an ATH of 57,960,448.
Ethereum, together with other altcoins, has enjoyed a remarkable bull run. For instance, Dogecoin (DOGE) recently entered the top-ten list despite it being initially invented as a “joke currency” based on the “Doge” meme featuring a Shina Inu dog.
With a market capitalization of $294.73 billion, will Ethereum hit highs of $5,000 before the end of 2021? Only time will tell.
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